Tsinghua subsidiary to buy Tongfang Guoxin

Tsinghua Unigroup Ltd, the State-backed Chinese firm that recently agreed to buy a $3.8 billion stake in Western Digital Corp, is close to acquiring Tongfang Guoxin Electronics Co, a person familiar with the matter said.

Tsinghua Unigroup Chairman Zhao Weiguo said in an interview on Sunday that he was closing in on an acquisition of a chip company he founded and served as its first general manager, though he declined to name the target. Tongfang Guoxin, which makes oscillators and resonators that go into electronic products, fits that description.

The companies also have ties. Tongfang Guoxin's biggest shareholder is Tsinghua Tongfang Co, an affiliate of closely held Tsinghua Unigroup.